Economic Goals Factors of Production Part 1 Factors of Production Part 2Economic Systems

An economic system that focuses on giving individuals in that society the ability to make their own economic decisions without interference from the government is pursuing this economic goal. What is economic freedom?

An economic system that focuses on allocating its resources in such a way that the greatest number of consumers get what they want with the least amount of waste is pursuing this economic goal. What is economic efficiency?

An economic system that focuses on policies that seek a “fair” and “equitable” distribution of the country’s wealth is pursuing this economic goal. What is economic equity?

An economic system that focuses on producing more and better goods & services that will ultimately result in a higher standard of living is pursuing this economic goal. What is economic growth?

An economic system that focuses on providing the less fortunate with the support they need in terms of food, shelter, and health care in order to live decently is pursuing this economic goal. What is economic security?

An economic system that focuses on eliminating economic uncertainty is pursuing this economic goal. What is economic stability?

The inputs of an economic system are also referred to as this. What are the Factors of Production (Productive Resources)?

The 3 factors of production. What are Natural Resources, Human Resources, and Capital Resources?

A natural resource like sunlight or wind that is widely available and in no danger of being used up is referred to as this type of natural resource. What is a perpetual resource?

A natural resource like plants or livestock that can be replaced as it is being used is referred to as this type of natural resource. What is a renewable resource?

A natural resource like oil or coal that can not be replaced as it is being used up is referred to as this type of natural resource. What is a non-renewable resource?

A human resource provided by someone like an accountant or lawyer is referred to as this type of human resource. What is mental activity?

A human resource provided by someone like a construction worker or worker on an assembly line is referred to as this type of human resource. What is physical labor?

The level of skills possessed by an individual worker is referred to as this. What is human capital?

Capital resources like machinery or equipment or inventories used to produce final products are referred to as this type of capital resource. What is physical capital?

The money a business has available to start and operate a business and do things like pay employees or purchase inventory is referred to as this type of capital resource. What is financial capital?

This is the term used to measure the level of output per unit of input. What is productivity?

The 3 basic economic questions answered by each economic system. What are What To Produce, How To Produce, and For Whom To Produce?

This is who determines the answers to the 3 basic economic questions in a modern command economy. Who are central planners (government)?

The 2 primary economic goals of a modern command economy. What are Economic Equity and Economic Security?

This is who determines the answer to the basic economic question of What To Produce in a market economy. Who are consumers?

This is who determines the answer to the basic economic question of How To Produce in a market economy. Who are producers?

This is what determines the answer to the basic economic question of For Whom To Produce in a market economy. What is the price system?

The 2 primary economic goals of a market economy. What are Economic Freedom and Economic Efficiency?

The 3 main roles of government in a mixed economy. What are establishing institutions that enable markets to operate, protection & regulation, and providing public goods?